NEWS RELEASE 03/04/11
Financial Accounting Foundation Outlines Plans to Address Standard Setting
for Nonpublic Entities
Norwalk, CT, March 4, 2011—The Board
of Trustees of the Financial Accounting Foundation (FAF) announced today the
formation of a Trustee Working Group to address the important topic of
accounting standard setting for nonpublic entities. The establishment of the
Working Group represents a major development in the FAF’s ongoing work on this
key strategic priority.
As a first step in the process to look at one
component of this issue, the FAF created the Blue-Ribbon Panel on Standard
Setting for Private Companies, sponsored jointly with the American Institute of
Certified Public Accountants (AICPA) and the National Association of State
Boards of Accountancy (NASBA). The Panel concluded its work in January 2011,
upon issuance of its report to
the Trustees. The establishment of the Working Group is the next phase of the
FAF’s review of the adequacy and effectiveness of the Financial Accounting
Standards Board’s (FASB) efforts in setting standards for the private company
and non-profit sectors in the United States.
The Working Group will
conduct outreach to stakeholders in various ways, including roundtable meetings,
surveys, and meetings with advisory and constituent groups and others. In
conjunction with obtaining input on the scope of the issues and concerns to be
addressed, the Trustees also will seek input on suggested improvements,
including the solutions recommended by the Blue-Ribbon Panel.
John J.
Brennan, FAF Chairman, said, “The FASB has an enormous responsibility in setting
accounting standards for all nongovernmental entities in this country. The FAF
Trustees’ initiative to review the unique needs and challenges of non-profit
entities and private companies is part of our commitment to ensuring that the
processes and resources are in place to meet the financial reporting needs of
all providers of capital, preparers of financial statements, auditors,
regulators, and others. We look forward to sharing our findings with all of the
FASB’s constituents.”
About the Financial Accounting
Foundation
The Financial Accounting Foundation (FAF) is the
independent, private-sector organization responsible for the oversight,
administration, and finances of both the Financial Accounting Standards Board
(FASB) and its counterpart for state and local government, the Governmental
Accounting Standards Board (GASB). The FAF is also responsible for selecting the
members of the FASB and GASB and protecting the independence and integrity of
the standard-setting process. The FAF Board of Trustees executes these
responsibilities, in addition to setting the strategic direction and goals of
the FAF, the FASB, and the GASB.
The FASB (www.fasb.org) is the designated
organization in the private sector for establishing standards of financial
accounting and reporting for nongovernmental entities in the United States. The
GASB (www.gasb.org) establishes and improves financial accounting and reporting
standards for state and local governments. The FAF also is responsible for
selecting the members of both Boards and their respective Advisory
Councils.
The FAF (www.accountingfoundation.org)
is based in Norwalk, Connecticut.